PALM OIL (B – TRAMS): Market still assessing the impact of Indonesia’s new restrictions on palm oil exports. Indonesian authorities shocked global edible oil markets last week by imposing a new rule requiring palm oil producers to sell 20% of their production to domestic consumers at fixed prices.
The rule change has clouded the prospects for crude palm oil supplies from Indonesia and has upended global edible oil markets, making traditionally the cheapest vegetable oil the most expensive of the three main edible oils sold worldwide.
Global grain prices bounced back on Friday after a period of profit taking on Thursday, with March soybeans and corn regaining ground above psychologically significant price levels to maintain a consolidation of recent gains.
The most active soybean futures posted their biggest weekly gain since June last year, and could see follow-up buying next week after Chinese traders return from a Lunar New Year week-long hiatus, a Singaporean oilseeds trader said.
“China has a lot to catch up in terms of pricing in the global soybean supply situation,” he said, referring to the recent decline in crop size by key agricultural consultants.